Talks Were Confidential Board Tells Committee

Press, Volume C, Issue 29508, 9 May 1961, Page 19

Talks Were Confidential Board Tells Committee

(New Zealand Press Association)

GISBORNE. May 8.

Mr S. D. Reeves, chairman of directors of Common Shelton and Company. Ltd, today commented on the artion of a self-appointed committee which has advised shareholders not to sign any, forms and has requested the board to hand to them the correspondence and to report on verbal discussions which took place with Wright Stephenson and Company. Ltd, before the present offer by the Hawke’s Bay Farmers' Co-operative Association. Ltd., being recommended to the shareholders. “The discussions we had with Wright Stephenson's representatives were in the confidential category and the board, in refusing the request of the committee, is honouring an agreement mutually arrived at, and freely entered into, by both

parties,” said Mr Reeves "Shareholders will see that the Hawke’s Bay Farmers’ pay better rebates, higher dividends and have greater asset backing to their shares than Common Sheltons. Representation “Unanimously recommend, ini this proposition to shareholders. the board were very conscious of the fact that they represent 20,051 shareholders.

This is the first proposition the board has considered sufficiently satisfactory to warrant proceeding to the point of receiving an offer and recommending to shareholders. said Mr Reeves.

It is the only formal offer ;he board has received.

"The issue is simple for shareholders; it is their Prerogative to accept or reject

an offer that is recommended by their board.’*